Need input on whether or not to buy condo to rent

[MinnieMom]

DH and I have been talking for years about buying a condo in the Kissimmee area to rent out and of course have for our personal use. I know there are a few owners on here and I'd love to get some input from you on what your experiences have been like.

Do you have any trouble renting your places or do you find that you stay fairly booked?

Care if I ask what taxes and property management fees are like?

Have you had any problems with renters not taking care of the home?

I'd love to hear the good, the bad, and the ugly! We have talked about this for so long that I feel like it's just time to make a decision either way. We'll be going down in April and staying at Windsor Hills, so if we decide to go for it I figure that will be a good time to start looking around at places.

Thanks so much for any advice!

 

[KINGBOBOFTHENORTH]

Can't answer your questions directly since we live here, but I can tell you that right now real estate is a "buyers" market down here, particularly with condos. A lot of them are apartment complex conversions that can be picked up pretty cheaply with incentives such as closing costs paid, association fees paid for a year, free upgrades, etc. There are also some new condo hotel high rises coming in. I think now is a good time to look around and see what's available. You might call the Orlando Sentinel and order a Sunday-only subscription by mail, and get the paper a few days later. The real estate portion with lots of ads by developers has been 6-sections lately.

BobK/Orlando

 

[5mins2disney]

I'd be happy to discuss some of this with you...but not on a public forum! LOL Feel free to PM me or email me. I have an excellent realtor we work with who specializes in resort properties (Windsor Hills, WP, EI, etc) who could probably show you some homes if you wanted to see anything while you're down there. That's exactly how we ended up buying a place there ourselves last year, stayed in WHR twice, loved it so much, we bought a place last trip down! hehe...most expensive Disney souvenir ever!

All of your other questions...well the answer depends on a lot of things of course, which is why I'd rather not discuss it on a public forum, it's a conversation better had privately.

I will say it's a buyer's market right now, and personally, I think it's a great time to be buying a 2nd home or vacation home. We were about to buy another townhome, then I just learned my company is shutting down soon and I will be losing my "real" job soon, so we decided to hold off for the time being. Anyone needs a Sr. IT Mgr in Chicagoland please let me know!

Anyhow, I think it's a good time to be a buyer, if you can afford it, the market makes sense for you, etc, there's a lot that goes into it and I've had this same discussion with quite a few other prospective vacation home buyers. I'll be glad to tell you how it works "like it is" so at least you're not hearing it from a sales person or something who's bias or interest is to sell you a place.

- George

 

[MinnieMom]

Thanks so much for the input. I checked the Orlando Sentinel's website and see that I can do some real estate searches on there. Depending on what kind of results I get, I might just order a subscription to the Sunday paper too.

George - I just sent you a PM. Thanks again!

 

[bearzabout]

Many people are having a hard time with the rising cost of insurance. Budget way more than you ever thought for insurance so you don't get in a bind if insurance continues to double every few years. I just read somewhere that someone who used to pay $700 a year may be paying $9,000 this year.

I see many homes advertised for rent at around $100 a night. You will be competing with hundreds of other condos so decor, location and marketing will all be important. I wouldn't count on renting it to pay the bills. That way, if renting is marginal, you won't risk financial difficulties.

The Orlando Sentinal had an article today on how many forclosures there are in the Orlando area. So many people bought then can't make it when costs increase. So many houses are for sale now that they can't easily sell to get out from under the financial burden. The article said the problem will get worse before it gets better so it may be a bit early to take advantage of the downturn in the market.

 

[FLParadisevilla]

I second George feel free to PM me and I would be happy to answer any of your questions!
I just don't think its a good idea to discuss this on an open forum like this.

 

[CarolA]

Well, I looked into this once (not for Orlando), but for another tourist destination.

A few considerations

IF you cannot afford the mortgage without ANY rental income don't do it. You just never know. (Remember the downturn after 9/11?) Plus look at the rental rates on places like VBRO. You have LOTS of competetion some of which is going very cheap!

Taxes. Florida has a "Homestead" type exemption. However, since this is your secondary home you won't get it. In other words, the local tax authorities will "stick it to you" LOL!

Insurance. Go over to the budget board and read some of the posts on FL Insurnace costs. SCARY!!!

You have to make your home "special" to rent and since so many "pool" homes are out there a condo is already at a disadvantage.

 

[5mins2disney]

Insurance for a townhome in Windsor Hills runs roughly $800 a year, not really all that bad actually, FYI. It's not on the coast, so not getting hit with hurricane rates like the coastal properties would be.

Yes, there is a lot of competition, and you need to be "on your game" in terms of marketing / amenities, etc.

We haven't found taxes to be all that bad to be honest, even without the homestead exemption. Lot worse where we live here in the Chicago suburbs! (We pay well over $10k a year for a single family home here!)

You should have a nice reserve to pay the mortgage and bills for a period in case you don't get any rentals, you don't want to be like many people that are ending up in foreclosure right now. Now, if you can swing it, those same foreclosures represent some pretty healthy buying opportunities! I just talked to a realtor last week who sold a WHR townhome that went into foreclosure for $230k! That's CHEAP!

 

[CarolA]

We haven't found taxes to be all that bad to be honest, even without the homestead exemption. Lot worse where we live here in the Chicago suburbs! (We pay well over $10k a year for a single family home here!)

!

OK, it's all realitive. I paid about $2,000 a year for a four bedroom brand new construction single family home in Nashville. Compared to that FL was high!